{"id":4373,"date":"2026-10-10T06:04:05","date_gmt":"2026-10-10T06:04:05","guid":{"rendered":"https:\/\/real-dubai.com\/buying-costs-property-dubai"},"modified":"2026-10-10T16:19:13","modified_gmt":"2026-10-10T16:19:13","slug":"buying-costs-property-dubai","status":"publish","type":"post","link":"https:\/\/real-dubai.com\/en\/buying-costs-property-dubai","title":{"rendered":"Buying costs for property in Dubai: what you need to budget for"},"content":{"rendered":"\t\t
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Guide \u00b7 Costs<\/div>

Buying costs for property in Dubai: what you need to budget for<\/h1>

On top of the purchase price, Dubai charges fixed fees: for the Dubai Land Department, the Registration Trustee, the documents and the agent. The good news: every item is clearly regulated and can be calculated precisely in advance. Here you get them all at a glance \u2013 with a worked example and official sources.<\/p>

Updated: October 2026 \u00b7 Reading time approx. 7 minutes<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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In short:<\/b> For a ready apartment, around 6.5% comes on top of the purchase price, slightly more for smaller apartments. At AED 1.5 million, that is around AED 96,000. To be safe, budget 7% \u2013 from your own funds, because these costs cannot be financed.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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In this guide<\/strong>
  1. The four items at a glance<\/a><\/li>
  2. Worked example for two prices<\/a><\/li>
  3. Buying costs for off-plan<\/a><\/li>
  4. What financing adds<\/a><\/li>
  5. Running costs as an owner<\/a><\/li>
  6. Budget checklist<\/a><\/li>
  7. FAQ<\/a><\/li><\/ol><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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    The four items at a glance<\/h2>

    Many countries charge a property transfer tax or stamp duty on purchases. Dubai doesn\u2019t. Instead, four items are due on purchase: three to the authorities, one to the agent.<\/p>

    1. Dubai Land Department registration fee: 4%<\/h3>

    This is the biggest item. The Dubai Land Department (DLD) is Dubai\u2019s land registry and charges 4% of the purchase price for registration. Officially, buyer and seller each pay 2%. In practice, the buyer usually pays the full 4%.<\/p>

    Plain talk:<\/b> You can try to negotiate the split. But budget for the full 4%. Anything else is a bonus.<\/div>

    2. Registration Trustee fee<\/h3>

    The transfer is registered at a DLD Registration Trustee Office. For prices from AED 500,000 this costs AED 4,000 plus 5% VAT; below that, AED 2,000 plus VAT.<\/p>

    3. Documents and fees<\/h3>

    The title deed costs AED 250, the site plan another AED 250. On top come AED 10 each in Knowledge and Innovation fees. AED 520 in total \u2013 hardly worth mentioning, but included for completeness.<\/p>

    4. Agent commission<\/h3>

    The amount isn\u2019t fixed by law. 2% plus 5% VAT is customary. At REAL DUBAI, it is exactly that 2% plus VAT for ready properties \u2013 set out in the brokerage agreement before we show you the first apartment. For off-plan, you pay us nothing; the developer pays the commission. More on our page Real Estate Agent in Dubai<\/a>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/section>\n\t\t

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    Worked example for two prices<\/h2>

    This is what it looks like in practice \u2013 for a smaller and a mid-sized apartment, both ready:<\/p>

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    Item<\/th>AED 800,000<\/th>AED 1.5 million<\/th><\/tr><\/thead>
    DLD registration fee (4%)<\/td>AED 32,000<\/td>AED 60,000<\/td><\/tr>\n
    Registration Trustee (incl. VAT)<\/td>AED 4,200<\/td>AED 4,200<\/td><\/tr>\n
    Title deed, site plan, fees<\/td>AED 520<\/td>AED 520<\/td><\/tr>\n
    Agent commission (2% + 5% VAT)<\/td>AED 16,800<\/td>AED 31,500<\/td><\/tr>\n
    Total<\/td>AED 53,520 (\u2248 6.7%)<\/td>AED 96,220 (\u2248 6.4%)<\/td><\/tr>\n<\/tbody><\/table><\/div>

    For smaller apartments the percentage is slightly higher, because the fixed Trustee and document fees weigh more. The more expensive the property, the closer you get to 6%.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/section>\n\t\t

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    Buying costs for off-plan<\/h2>

    The 4% registration fee also applies when buying from a developer \u2013 and not at handover, but as soon as the purchase is registered in the interim register, known as Oqood. There is no agent commission, because the developer pays it. So budget around 4% plus smaller administration fees.<\/p>

    Which fees apply in your case is set out in the contract with the developer (Sale and Purchase Agreement). Ask for a complete list before you sign.<\/p>

    More about the process and how your money is protected in our guide Buying off-plan in Dubai<\/a>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/section>\n\t\t

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    What financing adds<\/h2>

    If you finance through a bank, the mortgage is also registered with the DLD. That costs 0.25% of the loan amount plus fees.<\/p>

    Note:<\/b> Since February 2025, banks may no longer finance the DLD fee and the agent commission. You pay these costs from your own funds \u2013 on top of the equity the bank requires anyway.<\/div>

    How much a bank in Dubai will finance at all depends on whether you live in the UAE and whether it is your first home. You\u2019ll find the limits in our FAQ on financing<\/a>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/section>\n\t\t

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    Running costs as an owner<\/h2>

    After the purchase, you pay annual service charges for common areas and maintenance. The regulator RERA must approve them in advance, and they are allocated according to the size of your unit. You can find the approved rates for each project in the DLD Service Charge Index.<\/p>

    There is no annual property tax. Instead, Dubai charges a housing fee of 5% of the annual rental value, paid monthly via the electricity and water bill. It is paid by whoever lives in the property: the tenant if you rent it out, you if you live there yourself.<\/p>

    If you rent out, every tenancy contract must be registered in the Ejari system. Via the Dubai REST app this costs AED 177.75.<\/p>

    Tip:<\/b> Look at a project\u2019s service charges before you buy. They help determine how much of the rent you keep in the end.<\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/section>\n\t\t
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    Budget checklist<\/h2>

    To avoid surprises when you buy, plan like this:<\/p>